Nigeria has finalized a production-sharing contract (PSC) with French energy major TotalEnergies SE and local partner South Atlantic Petroleum (Sapetro) for two deepwater oil blocks in the Niger Delta Basin.
According to Reuters, the agreement, which covers petroleum prospecting licences (PPLs) 2000 and 2001 awarded in the country’s 2024 licensing round, spans approximately 2,000 square kilometers (772 square miles).
Under the terms, TotalEnergies will hold an 80% contractor interest, while Sapetro retains 20%, Nigeria’s upstream regulator confirmed.
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Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), described the deal as a milestone for Nigeria’s energy sector.
“This PSC signals the start of a committed work programme that will help us unlock the untapped geological potential of our deepwater, expand our reserves, boost production, and strengthen Nigeria’s energy security,” Komolafe told Reuters.
The contract includes provisions for production and signature bonuses, minimum work guarantees, profit-sharing arrangements, and compliance with Nigeria’s Host Communities Development framework.
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It also requires environmental safeguards, such as decommissioning and remediation funding.
Nigeria, Africa’s largest oil producer, is seeking to reinvigorate its upstream industry amid declining global investment in fossil fuels and growing pressure from the energy transition.
Image Credit: Premium Times Nigeria
